These are the questions a lot of people have been asking themselves lately. Well, I have news for you.
THE POWH-Coin (The Proof of Weak Hand)
What happens when the good-hearted technology geek meets the cold-hearted scammer? Well, this happens. And by "this" I mean one of the most brilliant and funny inventions of the last months. You can call it a game, a scam, a social experiment or an investment, that's up to you. Whatever you choose, you will be probably right. Let's take a look:
POWH is a sustainable and theoretically infinite Ponzi Scheme where no one can run away with your money. Sounds to good to be true? Well, maybe it isn't. Why? Because Mr. Ponzi is a bunch of code lines, a smart contract. It just gets ETH, gives out token and vice-versa. Not even the developers can run away with your money.
How does this work, tell us already!!!!!
What happens when the price gets too expensive for new people to want to buy in?
They certainly don't want to enter into a pyramid scheme that's already too big, and if no one is coming in, the holders are not getting any dividends. They are stuck, price is stable so they are not getting anything from holding!!
What does a real token holder do in such a situation? What a real holder does best....HODL!
How can I make money with crypto?
Is it easy? Is it too late?
Is this legal? What if this is a scam?
In these last times we have witnessed many amazing new technologies where one can make money, such as the blockchain, Ethereum's Smart Contracts, IOTA's Tangle etc. We also witnessed some of the old world money-making technologies too, such as scams. ICO scams and the biggest, most popular and ancient-technology scam: the Ponzi Scheme aka Bitconnect.
Can you make money by enterprising in one of the above mentioned practices?
YES, no doubt!
But can you make money by doing them together? Legally?
Alright, I'll tell you how it works, you crypto bull:
You buy your POWH tokens by sending some ETH to the smart-contract. For every token that you buy, the price of POWH rises by 0.25%, and every time someone buys tokens, 10% of the value is turned into new tokens that are distributed to the holders.
Every time some sells a token, the price goes down 0.25%. This means that when someone wants to cash out, they will crash the price of the token. (You can cashout whenever you want by sending a transaction of zero ETH to the smart-contract address. It will automatically give you the amount of ETH you have in tokens to the actual price.)
Result: You have a never-ending pyramid like this:
And that's why it's called the Proof of Weak Hands. Because the weak hands will keep the system running. The first one who says: "Fuck it, I will cash out my profits, I don't have time for this, no-one will enter the pyramid now"...he's the first 'loser'. He will drive the price down (0.25% per token) and will open the door for fresh money that was eagerly waiting on the sideline, ready to attack when the price comes down.
Who wins? The holder, who now will get dividends from the new money. Simple as it can get!
Well, I think this is fascinating. Not in a sense of making money but more in a game theory kind of way.
If you Hold For Dear Life you will have massive gains. That's exactly the challenge! Can you?
I compare this to the game we played as kids, starring at each other seriously and trying not to laugh. The first
one who laughs loses. The same
thing applies here: first who sells, loses. This is the most interesting social and financial experiment I have ever seen. Who can hold longer? Who wants fast profits? Who has the nerves to hold? Who has an IRON HAND?
Let the game begin!
Let me know what you guys think. Maybe it's just me hallucinating from the lack of food in my system...gotta got eat something for lunch, this crypto life is making a dent! :)
Disclaimers:
1. I didn't buy any POWH coins.
2. The developers had a bug in the contract so there was a little catastrophe: Some hacker detected the bug and altered the smart contract code in a way that it is impossible to cash out. No one can cash out now. It's not like someone ran with the money, they just screwed the contract. From what I know the team has now and external auditing group looking over the code to get it hacker-proof. I don't know if they will launch the POWH again or not. I guess they will, and I hope the contract isn't flawed because I was thinking into throwing in a little amount just for the funs.
This is their official website, it's not running properly now though: https://powhcoin.com
You can read the original here: http://powhcoin69.com BUT DONT SEND ETHEREUM
TO THAT ADDRESS! It's not working right now.
UPDATE: The new pyramid site is https://ethpyramid.com
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